Don’t laff, this is serious!

The laffer curve. The libertarians most powerful tool. It explains how increasing tax rates by too much can lead to reduced revenue and that decreasing tax rates can promote growth and prosperity.

Ronald Reagan proved this can work:

The table above, which is based on data from the IRS’s Statistics of Income, shows what happened to tax collections from upper-income taxpayers between 1980 and 1988. Supply siders can be criticized for many things, especially their apparent disregard for the importance of limiting the size of government, but the IRS figures clearly show that lower tax rates were followed by more rich people, more taxable income, and more tax revenue. For those keeping score at home, that’s a perfect batting average for supply-side economics. – Dan Mitchell

The majority of tax rate hikes arrive via class-warfare policies, which aim to ‘tax the rich and give to the poor’. However, as I explained here, the geese that lay the golden eggs can fly accross the border.